Indian Railway Finance Corp (IRFC): Best NBFC Railway Stock Suggested for Purchase; Target Prices for the Short-to Long-Term
The biggest railway stock in the nation, the Indian Railway Finance Corporation (IRFC), is making a comeback, and for good cause. Both in the short and long terms, an increase in IRFC is anticipated. The technical indications are stable, and the stock’s fundamental direction is sound. IRFC has set short-term and long-term target prices of Rs 156 and Rs 220, respectively.
On Tuesday, IRFC shares kept up their recent gaining trend. With a market value of Rs 1,93,021.83 crore, the stock was up 2.50% on the BSE at Rs 147.70 a share.
This massive railway that pays dividends is a multi-bagger. Since its 52-week low of Rs 27.93 per share, IRFC has increased by an astounding 429%. The highest price that IRFC has ever hit is Rs 192.80 per unit.
The price of IRFC shares has increased 47.16% year to date, 399.83% over the course of a year, and 494.37% over the course of its whole history.
IRFC’s short-term target price is now expected to reach Rs 156. IRFC was given a one-day trading call.
Prabhudas Lilladher’s technical analyst, Shiju Koothupalakkal, advises purchasing IRFC shares on April 24 with a target price of Rs 156. The experts advise maintaining the stop loss at Rs 144.
The greatest aim of Rs 220, which was recently established, is anticipated to be reached if IRFC breaks over the Rs 156 level, putting it closer to the Rs 160 level.
IRFC Share Long-Term Target: According to CNBC-TV18, technical expert Manas Jaiswal has predicted that throughout the course of the next six to eight months, IRFC shares might surpass Rs 220 levels. While expressing optimism over the IRFC, he said that it is unlikely to occur above Rs 200 unless the share price surpasses Rs 160. If the share price dropped below Rs 100, he encouraged stockholders to sell their IRFC holdings.
Additionally, according to Trendline, two analysts’ consensus rating for Indian Railway Finance Corporation Ltd. is BUY.
Additional information from IRFC:
The next significant event for IRFC will be the announcement of its profits, which is scheduled for later in May. The firm reported a net profit of Rs 1,602.23 crore for the third quarter of FY24, up 5.4% from the profit of Rs 1,549.87 crore in Q2FY24 but down 1.8% from PAT of Rs 1,633.45 crore in Q3 FY23.
Regarding the top line, IRFC’s revenue decreased little from QoQ but remained strong YoY. IRFC’s revenue in Q3FY24 was Rs 6,741.86 crore, growing 8.4% YoY but decreasing 0.36% QoQ. Interest income, which totaled Rs 2,334.84 crore in Q3FY24, drove the revenue.
A 15% dividend, or Rs 1.5 per share, was paid in 2023 to holders of IRFC shares.
To succeed in business, IRFC has made significant changes to its senior management. Uma Ranade was named Chairman & Managing Director (Additional Charge) by the Railway Ministry.
Indian Railway Finance Corporation (IRFC), the official financial arm of Indian Railways, is recognized as a Miniratna. A number of organizations in the railway industry, including Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL), etc., have also benefited from loans made on this NBFC railway stock.
The main goal of the Indian Railway Finance Corporation (IRFC) is to use market borrowings at the most favorable rates and conditions to satisfy the majority of the Indian Railways’ “Extra Budgetary Resources” (EBR) demand. Therefore, the Company’s main line of business is to borrow money from the financial markets in order to finance the development or purchase of assets that are then leased to Indian Railways.
